Freedom Industries Files for Bankruptcy Protection
Source: Wall Street Journal
Freedom Industries Inc., the company connected to a chemical spill that tainted the water supply in West Virginia, on Friday filed for Chapter 11 bankruptcy protection.
A petition signed by the company's president, Gary Southern, estimates the Freedom's debts at $10 million or less, but the cost of disaster is likely to run much higher.
Thousands of gallons of an allegedly toxic chemical called crude MCHM contaminated the water supply for hundreds of thousands of the state's residents for days, spawning lawsuits from businesses and people affected by the disaster.
Bankruptcy offers Freedom a break from having to answer the suits, some of which demand punitive damages. It also opens the door to court-supervised probes into what led to the disaster, and what resources are available to pay any damages.
Read more: http://online.wsj.com/news/articles/SB10001424052702304419104579326840913801408?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304419104579326840913801408.html
meegbear
(25,438 posts)and they'll get too. The pricks.
Berlum
(7,044 posts)As always.
What a screw job.
DainBramaged
(39,191 posts)who would have thunk it?
stg81
(351 posts)mimi85
(1,805 posts)AlinPA
(15,071 posts)polls to vote for them.
MyNameGoesHere
(7,638 posts)I am assuming you are from western PA because you seem to understand the politics of my state which coincides directly with the dumb asses of your state. I could be wrong.
AlinPA
(15,071 posts)rdharma
(6,057 posts)Who would have thought it?
Demo_Chris
(6,234 posts)valerief
(53,235 posts)leftyohiolib
(5,917 posts)jeff47
(26,549 posts)KoKo
(84,711 posts)So they weren't keeping up their tanks and facilities but probably paying the Top Guys big bucks and now they say...Oopsie...No money.
So who takes care of the cleanup? The poor taxpayers of WVA.
stg81
(351 posts)Psephos
(8,032 posts)Bankster welfare. Courtesy of the bought-and-paid.
Enrique
(27,461 posts)Downwinder
(12,869 posts)Gordon Alf Shumway
(53 posts)They need to look for fraud there. Odds of Fraudulent Conveyance = 90% I'd bet.
QuestForSense
(653 posts)Journeyman
(15,043 posts)that it took so long.
dickthegrouch
(3,188 posts)Just as it is illegal to destroy evidence of a crime, especially if you have been notified of an investigation, it should be illegal to file for bankruptcy until all possible damages claims have been resolved.
If the company files for bankruptcy, the individual owners should automatically become liable in proportion to the amount of stock they owned at the time of the cause for action.
freshwest
(53,661 posts)Swept under the rug and covered by insurance, but marketed under a new name, and a sealed settlement. Oh, they'll still be doing the deed, and they've paid Boehner directly to protect their interests, the health of Ohio, WV and KY be damned.
Within a few news cycles, the meme will be: Never happened! Nothing can go wrong!
Gordon Alf Shumway
(53 posts)How much equity do you think the owners kept in this turkey? Probably about $50, especially after that odd merger a few months back. Looks pretty fishy now. They need to pierce the corporate veil and go after the officers, directors, owners. There also needs to be criminal prosecutions. They are not a bank, so it may be possible. Bankers always walk ...
dorkzilla
(5,141 posts)free hand of the market! RAND PAUL SAID SO, SO IT MUST BE TRUE!!!!!!!
Scalded Nun
(1,245 posts)The politicians enable these people/corporations/etc. and the voters enable the politicians.
Expect this to not only continue, but to get worse, until voters demand accountability via the ballot box.
And if we wait too long that might disappear as well!
PRETZEL
(3,245 posts)If debs are less than 10 million, what are the assets worth?
Are the Freedom's debts listed pre or post merger? Was the merger a vehicle for purchasing debt for cash?
Would be interested in knowing when Freedom's merger talks began.
herding cats
(19,569 posts)There should be a way to come up with a formula to figure out what potential damage could be done by a facility using dangerous chemicals on a watershed, or other such possible disasters. Then make them insure themselves or don't issue a license to handle the material. If they can't afford the insurance, then they shouldn't be in that industry. Insurance companies could require such facilities remit proof of inspections regularly as a condition to maintaining their coverage. smh
Turn CO Blue
(4,221 posts)Bennyboy
(10,440 posts)Now, they will get sold dime on the dollar, to a company that is probably related through some way and give the liability to the taxpayers. The republican way, privatize the profits, socialize the risk.
workinclasszero
(28,270 posts)Smells like..unrestricted capitalism. Yeah. Hows that working out for you West Virginia?
Birth defects and early cancers on the way. Thank god no evvvvvillll goobermint agency was allowed to interfere with Freedom industries right to profit off the misery of the citizens of WV!
Botany
(70,635 posts)Last edited Sat Jan 18, 2014, 09:53 AM - Edit history (1)
underpants
(182,988 posts)Freedom Industries is the product of a merger effective Dec. 31, 2013, that combined Etowah River Terminal, the facility where the leak occurred, Crete Technologies, and Poca Blending, located in nearby Nitro.
CanonRay
(14,132 posts)Another "free market" triumph.
Laf.La.Dem.
(2,947 posts)The corporation will go to jail
NorthCarolina
(11,197 posts)Aldo Leopold
(685 posts)And "allegedly toxic".
Fuck the WSJ! And Freedom Industries, obviously.
NBachers
(17,170 posts)busterbrown
(8,515 posts)Should be a law that a company be held responsible for employees salary and benefits if they close because of negligence costs.. 1 year!
wandy
(3,539 posts)And so it goes.
Sometimes ya just want to........................
AzDar
(14,023 posts)shenmue
(38,506 posts)Brigid
(17,621 posts)That is all.
muriel_volestrangler
(101,405 posts)Turbineguy
(37,392 posts)there will be a french fries shortage as a result.